Behind the Keystone Trust Setup

The business was set up to answer the call for Trust solutions which were affordable, professional and personable.

Since the Finance Act 2006 was introduced the rules regarding the taxation of Trusts have changed.  This has made it uneconomic to create Trusts in the Settlor’s lifetime which are in excess of £325,000 as generally a 20% tax charge is now levied on the excess.

Trust administration fees levied by banks and trust corporations have contributed and provided a strong disincentive to setting up new trusts.  The average bank or Trust corporation charges are in the order of 1.5% plus VAT as well as additional expenditure for anything they consider outside their normal duties.  If they do charge for anything in excess of their suggested responsibility, charge out rates for Trust Managers can average £200 per hour plus VAT.  On top of this when they apply the Trust capital for the benefit of the intended beneficiaries there is a withdrawal fee to compensate them for the future loss of income on those funds to the order of 2.5% plus VAT.  WE CANNOT see how this is acting in the best interests of beneficiaries.

Add to this an impersonal touch where interests are conflicted through tied investment management and the future of Trusts looks bleak.  We consider that there are thousands of dissatisfied families where they have not considered the impact of the charges and poor performance on their Trust Fund.  Sometimes they won’t even have seen a set of accounts to see the charges.

Speak to us to see why Keystone Trust is the best home for your Trust and/or Estate.